Italy to Refund Car Tax for Some Electric Vehicle Owners

Italy's government is preparing a new measure in its upcoming manovra, the annual budget law, that will introduce refunds on the car tax, or bollo auto, for certain electric vehicle owners starting in 2027.

According to reports, eligible drivers will be able to claim a refund of up to 386 euros. Notably, the measure extends coverage to electric cars with power output exceeding 80 kW, a unit used to quantify engine performance.

This marks a shift from the current system, under which only electric vehicles rated below 80 kW benefit from a full exemption from the tax altogether.

More powerful electric models had previously been excluded from this relief, meaning their owners paid the standard bollo auto despite driving zero-emission vehicles.

The new refund scheme is designed to close this gap, offering financial support to a broader range of electric vehicle owners regardless of engine power.

In Italy, the car tax is often collected through a direct debit arrangement, with payments automatically withdrawn from drivers' bank accounts each year.

Tax authorities have cautioned owners of cars under 80 kW, who already qualify for the exemption, against cancelling their direct debit prematurely.

This is because the administrative process of updating exemption records across the tax system takes time, and premature cancellation could lead to processing errors or confusion over payment status.

Instead, drivers are advised to wait for official confirmation that their exempt status has been fully registered before halting automatic payments.

The refund measure is part of a broader set of provisions within the budget law intended to encourage the adoption of electric vehicles across the country.

While the core details — the 2027 start date, the 386-euro cap, and the 80 kW threshold — have been outlined, further guidance on the application process and eligibility criteria is expected to be released as the measure moves through parliamentary approval.

The initiative reflects ongoing efforts by Italian authorities to align fiscal policy with environmental goals, though questions remain about implementation timelines and how the refund will interact with existing regional variations in car tax rules.